The USD/JPY and the U.S. 10-year Treasury yield are being swung by movements, but the baseline remains solid.

【10/13Market Overview

In Tokyo time, USD/JPY fell to 158.18 yen as crude oil futures and the decline in the U.S. 10-year yield during after-hours trading weighed on the pair. While the Nikkei stock average was falling, the upside remained heavy. In European trading, USD/JPY rose to 158.36 yen on some reports that the Bank of Japan is unlikely to raise rates at this month’s monetary policy meeting, but at the same time reports said that a 12-month rate hike possibility could not be ruled out, causing it to quickly stall and fall to 157.83 yen. Thereafter, buying interest supported the pair.10During158.18yen as the 10-year yield158.36yen to rise to 158.36, but was later pressured as market reports suggested that the BoJ may not raise rates at the upcoming policy meeting but did not entirely rule out a potential hike over the next 12 months, leading to a brief drawdown to 157.83 yen. Afterward, buying returned.12month rate hike possibility157.83yen.NYtime, the U.S.10year Treasury yield narrowed its decline,9month existing home sales exceeded expectations, and USD/JPY rose to158.46yen.

【10/14Market View